Why Is It Dangerous To Do Business With Unlicensed Real Estate Salespersons

The law states that unlicensed real estate service practice is illegal.  Unfortunately, many innocent people are still lured by fake real estate salespersons in the Philippines, posting to render real estate services.  Many more property sellers still patronize so-called freelance illegal real estate salespersons because they can avoid paying taxes and proper commission rates.

Here are some of the reasons why it is dangerous to deal with illegal and unlicensed property salespersons in the Philippines:

1. Fake real estate salespersons (agents) do not have PRC and HLURB licenses to protect.  When you deal with a licensed real estate salesperson, you know that you can file for cancellation of his/her licenses if the real estate salesperson has done any malpractice.  On the other hand, an unlicensed real estate salesperson swindled you; you cannot file for cancellation of his/her licenses because the unlicensed salesperson does not have licenses in the first place!
2. You know exactly where you can find a licensed real estate salesperson because he/she would have an office and/or a licensed real estate broker where he/she belongs.  They have an office address and are registered according to Philippine law.  And simply by looking at his/her licenses, you will see his/her background, address and credentials.  When a fake real estate salesperson ran away your money, you will never know where to find that person because he/she does not have an office or even affiliated to a licensed real estate broker.  And since a fake real estate salesperson will never show you any professional credentials, what information will you submit to the authorities other than a cartographic sketch?
3. When you do business with a licensed real estate salesperson, you have the confidence of transacting with a professional.  Licensed real estate salespersons need to adhere to the code of ethics and responsibilities for real estate service practitioners, thus providing you an ethical, moral and professional service.  On the other hand, fake real estate salesperson does not observe and has no code of ethics, conduct and standards. 

Doubtful practices such as misleading information, loan shark deals, fake property titles, fake real estate appraisals, fake property mortgage processing, forgery, fake ID’s, fake registered owner, fake registered spouse, fake Special Power of Attorney, tampered Extra-judicial Settlement of Property, inaccurate calculation of taxes, doubtful squatters’ settlement, and more… often we hear stories about these a fake real estate salesperson who do not follow any moral, ethical, and legal standards.

4. And lastly… it is illegal to do business transaction with unlicensed real estate salesperson in the Philippines.  Transacting business with these illegal real estate salespersons is punishable by law according to Republic Act No. 9646 known as the Real Estate Service Act of the Philippines.  You can search it on the internet and read the complete text of this Act.  Violation of Republic Act 9646 is punishable by:

·  For licensed real estate salesperson, the punishment shall be not less than 100,000 Philippine Peso fine or imprisonment for not less than two (2) years or both!

·   For unlicensed real estate salesperson, the punishment shall be not less than 200,000 Philippine Peso fine or imprisonment for not less than four (4) years or both!

Do not be an accomplice in violating the law!  Obey the law and avoid getting arrested.

Check these out:

Republic Act No. 9646 

- http://www.prc.gov.ph/uploaded/documents/RESA%20IRR%20%28lite%20version%29.pdf

Code of Ethics and Responsibilities for Real Estate Service Practitioners - http://www.rent.ph/mediacenter/resa-law-code-ethics-responsibilities-real-estate-service-practitioners/